Loan Confirmation Form?

Hi! Finally, I'm on the my way to join the wagon of those building with Carlisle Homes. Contracts are with me to sign until my solicitor gave a me a frown. You see, included in the list of documents that I need to fill in is a Loan Confirmation Form. It was to be sent back to Carlisle by the lender themselves. In section 1, the form is asking the lender to confirm that they are in the position to release funds for the construction of the house. Its funny because the lender will only do such after the contract is signed. Section 2 is asking the amount of loan funds available for construction or that the lender is in position to pay the certain amount towards house construction, pending clients' contribution to the contract price. The lender HAS to sign and even seal it with their company stamp. My broker finds it off.

I want to ask those who had built or those building with them if they're also given this "Loan Confirmation Form" to be filled up by your lender? My solicitor finds it unusual and the lender normally won't sign anything like that, she mentioned further. This is my first time to build and I was taken really taken aback.

I'd like to know if this is the ongoing "Carlisle Procedure" or if this is just one of their recent procedures because if it is just a recent procedure, my solicitor is saying "THINK TWICE".....hmmmmm.....

I really want to hear from you, please...

Thanks so much in advance...

cheers,
Hannah

Hi Hannah, we're building with H3nley and we had the same thing. Your lender should be fine with it, just ask them. Send it to them with a copy of the contract if need be or even the tender doc's....

The lender will liase with the builder's representative and it'll be done quicker than you think...

Not that big a deal these days in my opinion..

PS. Welcome to the forum!!!!!

Thanks so much,Phoenix, for a really quick reply

Now I'm happy! My solicitor and my broker seem to be out of range with that. They made me nervous

Thanks..

Hannah

I can't remember the exact paperwork but I do remember being in a similar Catch 22 situation - builder needs copy of loan approval before releasing contract, lender needs copy of contract before approving finance

I think it was resolved by getting loan pre-approval to certain amount and builder releasing tentative contract subject to loan approval. Seems common practice, both parties (ie lender and builder) are just protecting themselves.

hey Hannah, can i ask where in Berwick you're building?
We're building in the Chase.

WOW! We'll be building in The Chase as well.. facing the wetland near Kirabili Road. Its in one of those Class P lands Sure made my contract bloat...

Cheers,
Hannah

Thanks, Helyn. I did gave them a pre-approval and I thought that'll be ok. Seems not as they want a confirmation from the bank. If so,
that could be the trend nowadays to protect the lender and the builder.

cheers,
Hannah

Hi Hannah. I had a similar problem and my broker was adamant that it wasn't going to happen. I spoke with my CSR at the builder, explaining that I had pre-approval but couldn't get full approval until after the contract was signed and she said that construction wouldn't start until I had that approval - but I could sign the contract.

So, I signed the building contract, then submitted the signed contract to the bank and when the loan was fully approved I told the builder and they started construction. The builder was also happy just to have a copy of an email from my broker that said I had full approval and the amount I was approved for.

It might be a good idea to give your contract administrator at Carlisle a call and explain your concerns. They will have faced this problem before and will be able to tell you what can/can't be done. Perhaps ask them if at this point they'd be happy just to have a copy of any pre-approval you have.

Hmmm...
we weren't ask by our builder for that...
we just told them that we already got pre-approved and that's it!
off to contract stage.

WOW Hannah we're basically neighbours!!!!!

I've sent you a PM....